China Finance Minister Expects GDP Growth of 7% in 2013

Reuters With CNBC.com

Thursday, 11 Jul 2013 | 10:19 PM ET

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Brendan Smialowski | AFP | Getty Images

China's finance minister said he expects growth in the world's second-largest economy to come in at 7 percent this year, the official Xinhua news agency said on Friday, which would be below the government's official forecast.

"Despite the slowdown of China's economic growth rate, the structural reform is paying off," Xinhua quoted Lou as saying on the sidelines of the U.S.-China Strategic and Economic Dialogue.

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"While we cannot verify what Minister Lou meant, it seems unlikely to us as the 7.5% [growth target] was approved just four months ago at the National People's Congress (NPC)," Zhiwei Zhang, chief China economist at Nomura said.

Premier Li Keqiang has referenced the country's economic targets on several occasions in recent months with no mention of any revisions, he added, noting that an adjustment to the target may require approval from the NPC.

"We regard the quote with caution and wait for any clarification from the government," Zhang said.

Last month, Vice President Li Yuanchao said China would be able to maintain a 7 percent economic growth rate in the future.

Chinese authorities, worried about over-investment and strong growth in informal lending, have indicated they are prepared to tolerate slower economic growth rates as they drive through structural reforms.